DBRS Morningstar Confirms Ratings on All Classes of BANK 2019-BNK21, Discontinues Two Ratings

DBRS Limited (DBRS Morningstar) confirmed the following ratings on Commercial Mortgage Pass-Through Certificates, Series 2019-BNK21 issued by BANK 2019-BNK21:

-- Class A-SB at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (low) (sf)
-- Class C at A (high) (sf)
-- Class D at A (low) (sf)
-- Class X-D at A (low) (sf)
-- Class E at BBB (high) (sf)
-- Class X-F at BBB (low) (sf)
-- Class F at BB (high) (sf)
-- Class X-G at BB (sf)
-- Class G at BB (low) (sf)

All trends are Stable. In addition, DBRS Morningstar discontinued the ratings on Classes A-1 and A-2 as they were fully repaid with the June 2022 remittance, following the repayment of the NKX Multifamily Portfolio loan.

The rating confirmations reflect the overall stable performance of the transaction, which has remained in line with DBRS Morningstar expectations since issuance. As of the June 2022 remittance, 47 of the original 49 loans remain in the pool, with an aggregate principal balance of $1.1 billion, reflecting a collateral reduction of 3.4% since issuance. There are seven loans on the servicer's watchlist and one loan in special servicing, representing 13.0% and 0.8% of the pool balance, respectively. One loan, representing 8.0% of the current pool balance, is fully defeased.

4440 East Tropicana Avenue (Prospectus ID#33, 0.8% of the current pool) is secured by a retail building in Las Vegas, Nevada. The loan transferred to special servicing in September 2020 for monetary default, and ownership of the property was transferred to the trust in March 2022. The special servicer is working toward stabilizing the property before selling. The former largest tenant, 24 Hour Fitness (79.8% of net rentable area (NRA)), declared bankruptcy and vacated the subject in June 2020. The borrower was unable to back-fill the space with H&P Tires Express, LLC (20.2% of NRA) remaining as the sole tenant on a lease through July 2029. The March 2022 appraisal reported a value of $6.0 million, which is unchanged from the June 2021 value but a 56.5% decrease from the issuance value of $13.8 million. DBRS Morningstar maintained its liquidation scenario in its analysis from last review, resulting in an implied loss severity in excess of 55.0%.

Three loans, representing 23.2% of the current pool balance, are shadow-rated investment grade by DBRS Morningstar: Park Tower at Transbay (Prospectus ID#1, 10.1% of the pool), 230 Park Avenue South (Prospectus ID#2, 9.6% of the pool), and Grand Canal Shoppes (Prospectus ID#10, 3.5% of the pool). The Grand Canal Shoppes loan has several pari passu pieces secured in several commercial mortgage backed securities (CMBS) transactions, including three rated by DBRS Morningstar (GSMS 2019-GC42, CGCMT 2019-GC41, and BMARK 2019-B12). With this review, DBRS Morningstar confirmed that these loans continue to perform in line with investment-grade loan characteristics.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

Classes X-A, X-B, X-D, X-F, and X-G are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for this transaction.

The DBRS Viewpoint platform provides additional information on this transaction and underlying loans including DBRS Morningstar metrics, commentary, servicer-reported cash flows, and other performance-related data. For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology (March 4, 2022), which can be found on dbrsmorningstar.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on dbrsmorningstar.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at [email protected].

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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